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F&C Asset Management today warned it expects gross outflows this year of Â£7.8bn (â¬11.5bn) in a trend that will continue into the start of next year.

Alain Grisay, who takes over from Howard Carter as F&C's chief executive next month, said in a trading statement today: "While investment performance has stabilised or improved in a number of areas during 2005, there are some product areas where we are devoting further attention."

Grisay added: "The poor three-year records in these areas have continued to lead to client outflows during the final quarter of the year."

Since becoming chief-executive-in-waiting Grisay has made a number of personnel changes to F&C's investment staff. In October the firm announced the arrival of a group of UK equity portfolio managers from Deutsche Asset Management, whose London division has been troubled by poor equities performance.

In early October Robin Woodall, F&C's head of UK core equities, left the firm together with several colleagues.

Last month Tony Broccardo stepped down as F&C's chief investment officer as part of Grisay's reorganisation. Fernando Ribeiro has taken up the new post of head of investments.

At 09:00 GMT, F&C shares were down 2.5% to 185.25p.

The group said it expects next year to deliver more than £33bn in synergies from the merger in 2004 of F&C and Isis Asset Management. It said: "This will not only exceed our target but will be delivered ahead of schedule."